Coal keeps FreightCar America in the black. The company designs and makes aluminum-bodied railroad cars that are used to transport coal. It also manufactures coil steel cars, flatcars, intermodal cars, mill gondola cars, and motor vehicle carriers. FreightCar America refurbishes and rebuilds railcars and supplies forged, cast, and fabricated parts for its railcars and ones made by other companies. Its FreightCar Rail Services subsidiary supplies fleet management software and provides inspections and railcar repair and maintenance services. Customers include leasing companies, railroads, and shippers. The company has been making railcars since 1901.
Sales and Marketing
CSX Transportation and Norfolk Southern Railway accounted for 52% and 24% of its total revenue, respectively, in 2011.
FreightCar America is enjoying significant growth after plummeting sales caused it to suffer a net loss in 2010. Year-to-year sales skyrocketed by over 200% from 2010 to 2011, and the company posted net income of almost $5 million. The company attributes the growth to the recovery of the economy (as more products and goods are transported around the country) and an increased in demand for its railcars coupled with a higher revenue average per car. Its services segment -- comprised of its FreightCar Rail Service subsidiary -- also enjoyed a sales increase of more than 100% for 2011.
In 2010 the company purchased utility DTE Energy's rail-service business for $23.2 million. The deal bolstered FreightCar America's service offerings and helped it to deliver 6,188 railcar units in 2011 -- compared to the 2,229 units it delivered in 2010.
Chilton Investment company owns almost 12% of FreightCar America.
FreightCar America was once owned by mighty steel producer Bethlehem Steel, from 1923 to 1991. Transportation Technologies Industries (TTI) subsequently acquired it, only to sell the company to an investor group, which included Whalen, in 1999. FreightCar America went public in 2005. – less